How Do ESG Rating Discrepancies Affect Corporate Financing?—Evidence from Chinese Listed Firms

This study investigates the ESG rating effect on firm financing by evaluating rating divergence data from five rating agencies, focusing on China’s A-share listed firms spanning 2018–2023. Empirical findings reveal: (1) ESG rating divergence has negatively exacerbated the financing constraints of enterprises. (2) Economic policy uncertainty in China moderates this relationship, significantly amplifying the financing constraint effect of ESG rating divergence. (3) Parallel intermediation tests the negative impact of information asymmetry and debt capital costs jointly transmitting discrepancies. (4) Deeper analysis shows non-state-owned enterprises, small-scale businesses, firms in less financially marketized regions, and entities with high rating divergence face more notable effects. This study explores the internal operation logic of ESG rating discrepancies on corporate financing constraints through two parallel channels of information asymmetry and debt capital cost. The research conclusions provide empirical support for regulators to promote the standardization of ESG information disclosure, assist investors in improving the risk pricing system, and improve the efficiency of market resource allocation.